Melius Research's Scott Davis thinks that mergers and acquisitions may be the answer. He reiterated his Buy-Accumulate rating on Boeing and raised his price target to $500 Wednesday, writing that the company is still in the early innings of what he believes is a "once-in-50-year transformation" on a wide scale that will make it a higher-return business with lower risk.

While Boeing is making major changes in terms of its businesses, Davis thinks that some strategic M&A could complement these efforts. While Boeing has been rumored to be on the hunt for some time, he believes that the company may finally be about to make a move.

And what's the old saying—go big or go home? He sees the former happening, and what better big move, he asks, than buying General Electric's (GE) GE Aviation unit? He writes that it may not be the easiest deal to swallow, but Boeing can afford it, and if it could overcome regulatory and antitrust objections, it could be "groundbreaking."

GE, the worst-performing stock in the Dow last year, certainly could be persuaded to part with GE Aviation, and Davis believes that the Trump administration is "Boeing-friendly" and that the synergies of such a deal "would be gigantic."

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.